Correlation Between GlucoTrack and Electrocore LLC

Can any of the company-specific risk be diversified away by investing in both GlucoTrack and Electrocore LLC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GlucoTrack and Electrocore LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GlucoTrack and Electrocore LLC, you can compare the effects of market volatilities on GlucoTrack and Electrocore LLC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GlucoTrack with a short position of Electrocore LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlucoTrack and Electrocore LLC.

Diversification Opportunities for GlucoTrack and Electrocore LLC

-0.8

Correlation Coefficient

GlucoTrack  Electrocore LLC

Pay attention - limited upside

The 3 months correlation between GlucoTrack and Electrocore is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding GlucoTrack and Electrocore LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrocore LLC and GlucoTrack is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GlucoTrack are associated (or correlated) with Electrocore LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrocore LLC has no effect on the direction of GlucoTrack i.e., GlucoTrack and Electrocore LLC go up and down completely randomly.

Pair Corralation between GlucoTrack and Electrocore LLC

Given the investment horizon of 90 days GlucoTrack is expected to under-perform the Electrocore LLC. In addition to that, GlucoTrack is 2.58 times more volatile than Electrocore LLC. It trades about -0.26 of its total potential returns per unit of risk. Electrocore LLC is currently generating about 0.1 per unit of volatility. If you would invest  1,110  in Electrocore LLC on August 30, 2024 and sell it today you would earn a total of  115.00  from holding Electrocore LLC or generate 10.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

GlucoTrack  vs.  Electrocore LLC

GlucoTrack

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GlucoTrack has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Electrocore LLC

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Electrocore LLC are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Electrocore LLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GlucoTrack and Electrocore LLC

The main advantage of trading using opposite GlucoTrack and Electrocore LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlucoTrack position performs unexpectedly, Electrocore LLC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Electrocore LLC will offset losses from the drop in Electrocore LLC's long position.

The idea behind GlucoTrack and Electrocore LLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.